Q2CY23 Preview: Nestle India: Revenue seen at Rs. 46,880 million, PAT at Rs. 6,859 million

25 Jul 2023 , 12:10 PM

Result date: 27^th July, 2023

Recommendation: Add

Target price: Rs. 23,000

Nestle India is likely to post strong performance in the June 2023 quarter. The company’s volumes could grow 8% over the year-ago quarter. Pricing growth could witness slight moderation as compared to the previous quarters.

Price hikes coupled with deflation in prices of palm oil/crude oil are key margin enablers. On the other hand, increasing prices of dairy products could exert some pressure on the margins.

The company’s Profit After Tax (PAT) could grow 33.1% over the year-ago quarter.

Rs. Million	June 2023 estimates	YoY change
Revenue	46,880	17.0%
EBITDA	10,382	26.7%
Profit After Tax	6,859	33.1%

Source: IIFL Research